Thursday, September 5, 2013

The Unsubsidized Student Loan Monster

I am just a little out of the loop I guess, but maybe I'm not the only one. I applied for a student loan for graduate school this year, but when I saw that I was offered only an unsubsidized loan, I decided to turn it down to pursue more work opportunities to cover remaining costs. I had no idea that the subsidized loan for graduate students had left the scene!

Beginning in July 2012, graduate students applying for Stafford loans will only be offered unsubsidized loans with a 6.8% interest rate and 1% origination fee. Unlike subsidized loans, you will accrue interest on all of the loan while you are still in school. Before 2012, students were able first consider borrowing the majority of a subsidized loan and if necessary after this, then to borrow a portion of the unsubsidized amount. It makes me uneasy to consider a student loan that accrues interest before I have even had the chance to complete the education it was borrowed for. But if this is what you need to do, it's best to attempt to pay off the interest while you are in school before facing that interest-accruing monster amount after graduating.

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About Me

I'm a PhD student sharing information and resources as I navigate the predoctoral experience.
The Multicultural Doctorate is a blog to share advice and information to current and aspiring graduate students of color, in particular through a multicultural and multiethnic perspective.